By T. Scott Boatright
Parking has long been an issue for Louisiana Tech University students, faculty, and staff.
But the parking problem at Tech is headed toward an improved future after a move made last week by the Louisiana State Bond Commission.
That is because the Louisiana State Bond Commission has approved funding for the Louisiana Community Development in the form of $10,000,000 in revenue bonds to go toward the development, design, renovation, construction and equipping of a new parking facility and related facilities at Louisiana Tech.
Last year the University of Louisiana System Board of Supervisors began the process by approving plans for an on-campus parking facility expected to add 300 parking spaces to the existing parking lot near the pedestrian bridge on Mississippi Avenue.
The university plans to use proceeds of a loan from the Louisiana Local Government Environmental Facilities and Community Development Authority (the “Louisiana Community Development Authority”) to finance the project, represented through one or more series of revenue bonds.
Parishes, municipalities, special taxing districts, and other state political subdivisions, can apply to the State Bond Commission requesting to incur debt and levy taxes.
The commission’s approval last week was required before Louisiana Tech could apply to borrow money or issue bonds for the project.
Applications are approved based on compliance with Constitutional and statutory requirements and feasibility, including the ability to repay and incurred debt.
Money for these projects is borrowed from banks or other investors and is paid back over time.
Innovative Student Facilities, a Louisiana nonprofit organization, is expected to finance the development, design, renovation, construction, and equipping of the new parking facility for Tech.
A press release distributed on Wednesday by State Treasurer John Fleming, M.D., said this year, Louisiana achieved the highest rate of return on state investments in the past five years.
At the current rate, the state’s investment income is estimated to exceed $420 million.
That press release said that additionally, Louisiana’s General Obligation Bond rating was upgraded from AA- to AA by S&P Global Ratings which lowers the cost of borrowing for the state.
The release also said that in 2024, the State Bond Commission issued $293.82 million General Obligation bonds to fund capital projects as well as $97.105 million in General Obligation Refunding Bonds to refinance outstanding bonds providing the state with $3.12 million in net present value savings.
During last week’s meeting the commission approved $155 for nine projects, including the one at Louisiana Tech. Overall, the State Bond Commission has approved 95 debt applications totaling $3.89 billion and 144 local government elections.
